Susquenita School Board readjusts its final budget for 2014-15

Susquenita School Board's final budget, approved June 10, proved to be less than final.

Faced with a controversy about how assessed values were computed, the board on June 26 adopted a "new" final budget, which includes a .066 mill decrease for Perry County residents living within the district and an .822 mill increase for Reed Twp., Dauphin County residents.

The original "final" budget increased the Reed Twp. rate by 3 mills but kept Perry County at the current level.

The new budget sets the Perry County millage rate at 12.134, meaning the owner of a property assessed at $100,000 will pay $1,213.40 next school year, a $6.60 decrease.

The movement to rescind the original budget stemmed from Reed Twp. resident Keith Lindsey's comments at the board's June 10 meeting. He pointed out that assessed property values may have been skewed to maintain Perry County tax rates.

Susquenita's financial affairs director Roger Carl said for budgeting purposes, he adjusted the district's Perry County values the past three years to avoid a tax increase.

Carl said board members were unaware he was adjusting values. He made the adjustments to meet the board's wish to avoid tax increases.

"There was no malicious intent," he said. "No one is benefiting here."

Pennsylvania Education Department spokesman Tim Eller said Carl's adjustments were not illegal, and no financial punishment is being sought.

"It's not a legal issue, but it's a best practice issue," Eller said. "The Department of Education advises against it."

For budgeting purposes, the district relies on estimated values because administrators have to begin budget work six months prior to approval.

"Estimated to final, they are usually not too far off the mark," Eller said.

Carl said it's common for Perry County numbers to fluctuate significantly. "Sometimes, in Perry County, they differ from $1 million to $2 million."

Eller said multicounty districts make budget work more difficult. "Susquenita is one of about 90 school districts statewide that cover more than one county.

"What tends to happen is ... you have your millage rates fluctuate each year. Residents see constant increases and decreases. I think (Carl) was trying to avoid that. I don't think any ill intent was part of this."

Carl said the assessed value will not be adjusted in subsequent budgets.

He said misinformation from the State Tax Equalization Board led to an erroneous Dauphin County rate. Under the original final budget, Dauphin County taxpayers would have seen a 16 percent increase in their bills, adding $313.20 in taxes to a home assessed at $100,000.

At 20.354 mills, the new budget provides a 4.2 percent increase with Reed Twp. residents paying $2,035.40 on a $100,000 property -- an increase of $82.20 from last year.

Carl said values given by the tax equalization board were reduced by almost $2 million since the original, June 10 approval.